Argentina's GDP growth slowed in first quarter as exports shrank

Argentina's economy grew less than expected in the first quarter as the agricultural sector contracted and exports fell.

Gross domestic product expanded 0.9 percent from the previous quarter, compared with the one-percent average forecast by economists surveyed by Bloomberg. The economy grew six percent from a year earlier, compared with 8.9 percent in the last three months of 2021.

The expansion was led by hotels and restaurants, mining, and transportation and communications. Exports fell 2.3 percent from the previous quarter, while imports rose 7.6 percent.

Economists surveyed by the Central Bank expect the economy to enter a brief recession in the coming months, with contractions in the second and third quarters ahead. Inflation of more than 60 percent and delayed wage growth are set to hit consumer spending, they warn, while exports are set to falter after the harvest season in the first half of the year.

The government forecasts four percent growth this year, while private economists expect it to reach 3.3 percent. It would be the first time in a decade that Argentina has recorded two consecutive years of growth. The country recorded an unemployment rate of seven percent in the first quarter, unchanged from the previous three months.